MIS40910 - Michael E Porter and James E Heppelmann’s, article, “How Smart, Connected Products Are Transforming Competition” (2014)

Module - Design,Development and Creativity
Class or Article - Article
Lesson or Name -  “How Smart, Connected Products Are Transforming Competition” (2014)
Additional Info - Page 65-88



Michael E Porter and James E Heppelmann’s, article, “How Smart, Connected Products Are Transforming Competition” (2014), argues that smart, connected devices are re-shaping and re-defining industry boundaries, business models and products offerings. Porter and Heppelmann propose by addressing the requirements and benefits of a connected product infrastructure, they should also consider their business’ strategies short term to secure their position long term. Porter and Heppelmann’s purpose is to present the change in industry boundaries and their products that smart connected devices will have, in order to better prepare business for their future marketplace. The article highlights the need for companies to consider their future role now in order to prepare and secure their position in the future marketplace by stating “ Shifting boundaries mean that companies that have been industry leaders for decades may find themselves playing more of a supporting role in a broader landscape.”

My Learnings

I have naturally a massive interest in the Internet of Things and what it means for its users but I have never sat on the other side and thought what it might mean for businesses. The IOT has the potential to disturb industry boundaries creating new markets and environments to work in. Companies need to consider their strategy, where they want to play and what there role will be, not taking this view point in the short term could hurt them long term. As mentioned in my previous reading, Phil Rosenzweig’s article, “Misunderstanding the Nature of Company Performance: The Halo Effect and Other Business Delusions” (2007), the concern I raised at the end in regards to companies need to develop strategies to help inform their vision but strategy is about choice and where there is choice there is risk where there is risk we have potential for failure aswel as success. 

What is going to be paramount for companies I believe is scenario planning, helping to look at potential outcomes or market movements/changes and have drawn up and game play plan for the future.

There are so many elements to the Internet of Things and the potential it holds both for companies and customers alike both with massive areas for improvement and scope change.

My Reflection

The canyon that could be IOT for a number of companies is a very large void that could consume alot of well known and large companies who have not strategiesed that far into their future. The demand for bandwidth and connectivity, as more products continue to move to a connected world will be paramount for a service and industry that works. The availability for products is there as digital consumer are early adapters but what might not be there is the wired and wireless bandwidth and connectivity to support large scale 
scalability. While I feel an architecture is admirable I feel that with such an undefined marketplace it is inevitable that a big ball of mud is created. I do know that miscrosoft are creating what they call a FABRIC for companies to plug and play for IOT which means an open source infrastructure that provides, data transfer, connectivity, products and service plug and play and other IOT Fabric plug and play. This is a massive area and I cannot wait to see what develop from here.

Watch this space and if you like this space and like cryptocurrencies, look in to an infrastructure called IOTA there is interesting benefits there.

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